QuickBooks is one of the most popular accounting software tools. It helps businesses manage their finances easily. One important feature of QuickBooks is the ability to accept credit card payments. However, understanding the charges can be confusing. This blog will explain how much QuickBooks charges for credit card payments.
Types of QuickBooks Payment Plans
QuickBooks offers different pricing models depending on your business needs. Below is a breakdown of these plans.
Table of Contents
| Plan | Best For | Monthly Fee |
|---|---|---|
| Pay-As-You-Go | Small businesses with fewer transactions | None |
| Monthly Payment Plan | Businesses with regular transactions | $20 per month |
Key Features Across All Plans
- Accept credit cards online, in-person, or through invoices.
- Secure payment processing.
- Easy integration with QuickBooks accounting software.
QuickBooks Credit Card Processing Fees
QuickBooks charges different fees depending on how you accept payments. Here’s a detailed breakdown:
| Payment Type | Fee |
|---|---|
| Swiped (in-person) | 2.4% + $0.25 per transaction |
| Keyed-in (manual entry) | 3.4% + $0.25 per transaction |
| Online payments | 2.9% + $0.25 per transaction |
What Do These Fees Mean?
- Swiped Payments: These are payments processed through a card reader. It is the cheapest option.
- Keyed-In Payments: These are payments where the card details are manually entered. It is slightly more expensive due to higher fraud risk.
- Online Payments: These are payments made via invoices or online stores.
Additional Fees
While the above fees are standard, there may be additional costs:
| Fee Type | Cost |
|---|---|
| Chargeback Fee | $25 per chargeback |
| ACH Bank Transfer | 1% (max $10 per transaction) |
| Card Reader (Hardware) | Starts at $49 |
Note: ACH transfers are a cost-effective option compared to credit card payments.
How to Save on QuickBooks Credit Card Fees
Here are some tips to reduce payment processing fees:
1. Use ACH Transfers: These have lower fees than credit cards.
2. Encourage Swiped Payments: Use a card reader for in-person transactions.
3. Optimize Your Payment Plan: Choose the right plan based on your transaction volume.
Example Calculation
Here’s how fees might look for a $100 transaction:
| Payment Type | Fee (%) | Flat Fee ($) | Total Fee ($) | Amount You Receive ($) |
|---|---|---|---|---|
| Swiped | 2.4% | $0.25 | $2.65 | $97.35 |
| Keyed-in | 3.4% | $0.25 | $3.65 | $96.35 |
| Online Payment | 2.9% | $0.25 | $3.15 | $96.85 |
FAQs: How Much Does QuickBooks Charge for Credit Card Payments
What is the cheapest way to accept payments with QuickBooks?
The cheapest way is to use ACH transfers. They only charge 1% per transaction, with a maximum fee of $10.
Are there any hidden fees with QuickBooks payments?
QuickBooks is transparent about its fees. However, extra charges like chargeback fees or hardware costs may apply.
Can I negotiate fees with QuickBooks?
Unfortunately, QuickBooks does not allow fee negotiations. However, you can choose a plan that fits your business needs to save money.
Does QuickBooks charge monthly fees for payment processing?
The pay-as-you-go plan has no monthly fee. The monthly payment plan costs $20 per month.
Is QuickBooks Payment secure?
Yes, QuickBooks uses advanced security measures to protect transactions and sensitive information.
Final Thoughts
QuickBooks makes it easy for businesses to accept credit card payments. While the fees might seem high, they are competitive compared to other payment processors. By understanding these charges and optimizing your payment methods, you can save money while offering convenience to your customers.
Disclaimer
The information provided in this blog is for educational purposes only. Please check the official QuickBooks website for the latest fee structure and terms.
About The Author
